Producer Price Inflation declines to 7.6% in June 2016

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The year on year Producer Price Inflation (PPI) declined to 7.6 % in June from a revised 11.0 % recorded in May this year.

The rate represents a 3.7% decrease as compared to May this year, while the month to month change in producer price index between the two months was 1.2 percent.

The utility sub sector recorded the highest year-on-year producer price inflation rate of 36.5% followed by the manufacturing subsector with price inflation of 3.7%.

Meanwhile the mining and quarry subsector recording the lowest producer price inflation of 0.1%.

The Producer Price Index measures the average change overtime in prices received by domestic producers for the production of their goods and services.

According to government statistician Dr. Philomena Nyarko, the decrease follows the decline in commodity prices.

“In terms of the driving force we are seeing a decrease in all industry inflation rate from the 11.0% to the 7.6% in June. It is also affected by the world commodity prices. So as the world commodity prices go down, then the price of our exports also go down.”

Though the utilities subsector remained unchanged in its monthly change rate, the mining and quarry subsector recorded the highest monthly change rate of 6.0%.

The manufacturing subsector recorded 0.4% in monthly change rate.
The petroleum sub sector continues to see a decline from the beginning of the year where it began with PPI of 3.3% but ended the half year (June 2016) with negative 4.7%

 

Source: Citifmonline